@Iusedtolurk wrote:AZEO using Bankcard vs AZEO using Storecard.
I always read Use a Bankcard NOT a Store card for AZEO and was wondering What is the reason behind that statement.
Do you somehow incur a penalty?
Do you not gain as many points?
Is something else the reason?
Appreciate anyone with Data Points addresing this question.
It has been reported in the forum that store cards are often not counted, so that if a store card is the only card reporting a balance, you might get the "all zero" penalty.
The algorithms treat store cards differently than "bank" cards. It seems logical because as a factor of your spending habits, a balance on a card that is only usable at a particular store is not the same as a credit card that is usable anywhere.
Frankly I have found that my store cards generally carry higher interest rates, so I don't want to carry a balance on them anyway. The exception is when I use a store card to take advantage of an offer/promotion.
@coldfusion wrote:
@TheKid2 wrote:The algorithms treat store cards differently than "bank" cards. It seems logical because as a factor of your spending habits, a balance on a card that is only usable at a particular store is not the same as a credit card that is usable anywhere.
Frankly I have found that my store cards generally carry higher interest rates, so I don't want to carry a balance on them anyway. The exception is when I use a store card to take advantage of an offer/promotion.
Just pointing out that you don't need to carry a balance each month to practice AZEO, only report a balance. That's also why one would not use a Chase card as The One as with Chase the PIF automatically triggers an out-of-cycle report of the $0 balance.
Good point. I tend to associate carrying and reporting as the same because that's essentially how it works out for me. I have to pay my cards early in order to not report a balance when I'm shooting for AZEO.
Not to hijack the thread but I too have a quick question about AZEO.
How do Amex NPSL cards come into play? Aside from one of my bank cards can my charge cards also reflect a balance and I properly be executing AZEO or should the charge cards also be PIF before statement date. I understand they dont factor into utilization but I am not sure how they play in the AZEO game.
@Iusedtolurk wrote:AZEO using Bankcard vs AZEO using Storecard.
I always read Use a Bankcard NOT a Store card for AZEO and was wondering What is the reason behind that statement.
Do you somehow incur a penalty?
Do you not gain as many points?
Is something else the reason?
Appreciate anyone with Data Points addresing this question.
Great questions regarding AZEO - I am sure I was bound to have them down the line. Look forward to replies.
@learningcredit54 wrote:Not to hijack the thread but I too have a quick question about AZEO.
How do Amex NPSL cards come into play? Aside from one of my bank cards can my charge cards also reflect a balance and I properly be executing AZEO or should the charge cards also be PIF before statement date. I understand they dont factor into utilization but I am not sure how they play in the AZEO game.
I do not think you can use a charge card as your balance-reporting card for AZEO purposes, but I'm not sure, and have no personal experience trying it. I've seen conflicting opinions on the subject.
Why don't you try it, and report back to us as to whether it works or not?
@learningcredit54 wrote:How do Amex NPSL cards come into play? Aside from one of my bank cards can my charge cards also reflect a balance and I properly be executing AZEO or should the charge cards also be PIF before statement date. I understand they dont factor into utilization but I am not sure how they play in the AZEO game.
The charge cards reporting a balance don't affect the revolver utilization percentage or revolver account balances, but they do affect the overall "accounts with a balance," so better to PIF by the statement date. If your AMEX NPSL card reports a balance and no other revolver account does, you'll likely see "No recent revolving balances" listed as hurting your score and still get an "all zero" revolver penalty on your FICO 8 scores.
For the best FICO 8 scores, the fewer accounts reporting a balance, the better.
@SouthJamaica wrote:
@learningcredit54 wrote:Not to hijack the thread but I too have a quick question about AZEO.
How do Amex NPSL cards come into play? Aside from one of my bank cards can my charge cards also reflect a balance and I properly be executing AZEO or should the charge cards also be PIF before statement date. I understand they dont factor into utilization but I am not sure how they play in the AZEO game.
I do not think you can use a charge card as your balance-reporting card for AZEO purposes, but I'm not sure, and have no personal experience trying it. I've seen conflicting opinions on the subject.
Why don't you try it, and report back to us as to whether it works or not?
I just might have to @SouthJamaica
I charge both my NPSL card monthly but may organize myself to only use one just to see what it does within FICO